SELECT COMMITTEE SELECT COMMITTEE ON PUBLIC SERVICESON PUBLIC SERVICES

14 JUNE 201114 JUNE 2011

435423

MANDATEMANDATE

Responsible for proclaimed national roads Toll and Non-Toll network

Maintain, upgrade, operate, rehabilitate and fund national roads

Levy tolls to service toll roads Manage concessionaires Advise the Minister on road related matters Create public value

Minister of Transport (Regulator Minister of Transport (Regulator Owner)Owner)

Governance and ControlGovernance and Control

Planning, Design, Construction, Operation, Planning, Design, Construction, Operation, Management, Control, Maintenance & Management, Control, Maintenance & Rehabilitation of National RoadsRehabilitation of National Roads

Chief Chief Executive OfficerExecutive Officer

Board Board Of DirectorsOf Directors

MOTMOT

Day to Day Business and Day to Day Business and Operations ManagementOperations Management

SANRAL StaffSANRAL Staff

SANRAL RELATIONSHIP TO MINISTER/NDOTSANRAL RELATIONSHIP TO MINISTER/NDOT

SANRAL has eight Strategic Objectives

1. Manage the national road network effectively • Non-toll roads• Toll Roads – ITIS, ITS• Concessions• Overload Control1.

2. Provide safe roads • Maintenance• Road Safety Management System

• Engineering• Education• Enforcement

STRATEGIC OBJECTIVESSTRATEGIC OBJECTIVES

3. Carry out Government’s targeted programmes • Community Development• Social and Entrepreneurial Development• Development of Human Capital

• Internal• External

• Education

4. Co-operative working relationships with relevant Departments, Provinces, Local Authorities and SADC member countries• Environmental relationships• Reputation Management• Other local efforts• Co-operation between neighbouring countries

STRATEGIC OBJECTIVES STRATEGIC OBJECTIVES CONT’DCONT’D

5. Achieve and maintain good governance practice

• Corporate Governance• Risk Management• Prevention of Fraud and Corruption• Internal Audit• Credit Ratings• Performance Agreement with the Executive

Authority

STRATEGIC OBJECTIVESSTRATEGIC OBJECTIVESCONT’D CONT’D

6. Transformation• External Environment

• Procurement Policy• Developing Human Capital• Community Development Programme• Higher education – support tertiary institutions• Technology transfer

• Internal Environment• Employment Equity

• Bursaries• Scholarships• Internships• Young Professionals Cluster

STRATEGIC OBJECTIVESSTRATEGIC OBJECTIVESCONT’D CONT’D

7. Achieve financial sustainability• Non-toll: Treasury allocations

• Optimum cash flow and liquidity management

• Toll: Borrowings : Currently close to R29 billion• DMTN Programme• Export Credit Agencies• Direct Foreign Investments• Bank Loans

8. Pursue research, innovation and best practice• Road Infrastructure Research• Performance Certification of Materials• Social Sciences Research

• Psychology behind pedestrian behaviour

STRATEGIC OBJECTIVESSTRATEGIC OBJECTIVESCONT’D CONT’D

Asset Management Systems for the timely maintenance of national roads

Planned increase of national road network by incorporation of roads as requested by Provinces

Good co-operative relationships with relevant government departments, provincial and municipal authorities

Toll Road development: Gauteng Freeways, N1/N2 Winelands

Community Development Projects (rural areas) Using appropriate technology Incident Management Systems Research and Development – pavement standards

KEY PRIORITIES FOR 2011/12KEY PRIORITIES FOR 2011/12

606,000, 97.40%15,985, 2.57%

185, 0.03%16,170, 2.60%

South African Road Network Split

All Roads (Proclaimed) SANRAL Other SANRAL GFIP

77%18%

5%23%

Annual Vehicle Kilometre Travel

All Roads (Estimate*) SANRAL Other (Measured) SANRAL GFIP (Measured)

*Estimated based on annual fuel sales (SAPIA) and average light vehicle fuel consumption of 8.7 km/litre and heavy vehicle of 3.5 km/litre.

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Description Non Toll Agency Toll

BOT Total

Dual

Carriageway610 520 443 1 573

4-Lane

Undivided11 299 240 550

2-Lane

Single12 429 1013 605 14 047

Total 13 050 1 832 1 288 16 170% of SANRAL Network 81% 11% 8%

NATIONAL ROAD NETWORK (km)

Total RSA Road Network Estimated at 606,000 km

ØPlease Note: 72% of Network Older than Original 20 Year Design Life

0%

10%

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1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Nat

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Pavement Age Trend

>25 yrs 21-25 yrs 16-20 yrs 11-15 yrs 6-10 yrs 0-5 yrs

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Forcasted Non-Toll National Road Network ConditonR6bn/year Fiscus Funding for 13,050 km - NO New Toll Roads

Excellent

Good

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Forcasted Non-Toll National Road Network ConditonR6bn/year Fiscus Funding for 11,050* km - With New Toll Roads

Excellent

Good

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Average Daily Traffic Trend

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2008 2013 2018 2023 2028

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Roa

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COST OF MAINTENANCE DELAY – AGENCY

Repair Cost = X / km

Good

Fair

Poor

Very Poor

3-5 Years

Repair Cost = 6X / km

5-8 Years

Repair Cost = 18X / km

(Ratio 1:6)

(Ratio 1:18)

Please Note: Typical Costs for 11.4m Wide Road in Flat Terrain

Very Poor ConditionPoor ConditionGood Condition

COST OF MAINTENANCE DELAY - ROAD USER (2009R)

Good Poor

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International Roughness Index (m/km)

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Toll Class 1

Toll Class 2

Toll Class 3

Toll Class 4

Based on HDM-4 Modeling

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Indices Comparison Trend

CPI Index PPI Index CPA Indexsource: www.statssa.gov.za

Strengthening/Regravel Backlog: Roads Strengthening/Regravel Backlog: Roads in Poor to Very Poor Conditionin Poor to Very Poor Condition

% Length Cost % Length Cost Length Cost

SANRAL 11.86% 1,932 R 15,456,000,000 0.00% 0 R 0 1,932 R 15,456,000,000Provinces - 9 22.79% 10,980 R 87,840,000,000 50.66% 69,216 R 13,843,111,157 80,196 R 101,683,111,157Metros - 9 4.12% 2,127 R 10,635,000,000 8.48% 1,227 R 245,315,473 3,354 R 10,880,315,473Municipalities 3.62% 1,363 R 4,089,000,000 28.54% 86,245 R 17,249,009,106 87,608 R 21,338,009,106

Total Backlog 16,402 R 118,020,000,000 156,687 R 31,337,435,736 173,089 R 149,357,435,736

Strengthening/Regravel Backlog: Roads in Poor to Very Poor Condition

Authority TotalGravelPaved

Actual numbers – Roads Infrastructure and Actual numbers – Roads Infrastructure and Fuel LevyFuel Levy

2009/10 2010/11 2011/12 2012/13

R Revised estimate (R)

Medium-term estimates (R)

Provincial 13,527,087,000 14,841,633,000 15,905,302,000 17,199,542,000

National 5,608,086,000 6,844,501,000 8,651,596,000 9,728,055,000

Local 10,050,262,238 6,955,989,601 8,380,816,634 1,713,432,045

Total 29,185435,238 28,642,123,601 32,937,714,634 28,641,029,045

Fuel Levy 28,832,536,000 34,300,000,000 35,000,000,000 38,110,000,000

General fuel levy sharing

6,800,000,000 7,542,000,000 8,573,000,000 9,040,000,000

Fuel pipeline 1,500,000,000 1,500,000,000 1,500,000,000

Net fuel levy 22,032,536,000 25,258,000,000 24,927,000,000 27,570,000,000

RAF Component

2009/10 – R12,556 billion2010/11 – R14,386 billion (est.)

MAINTENANCEMAINTENANCE

• Routine Road Maintenance: all the time Repairing potholes within 48 hours Replace guardrails, sign posts etc. Grass cutting Patching Clearing up after accidents Fencing etc.

• Periodic Maintenance ( every 7 – 8 years)• Special Maintenance

Community Development Community Development ProgrammeProgramme

Focus on the provision of much needed transport infrastructure within poor communities

Focus on method of infrastructure delivery Method of construction (labour enhanced

construction, maximize job creation) Transfer of skills Small contractor development Maximise retention of wealth in communities

• N17 East Toll Road Extension • N1 South and R30 Bloemfontein – Kroonstad• N1 Polokwane Bypass• N3 Mariannhill Extension

• Gauteng Freeway Improvement Project: Tolling planned to commence – subject to outcome of further consultations led by the Ministerial Steering Committee

State Toll Network Development

CAPITAL INVESTMENTCAPITAL INVESTMENT

Business area

R million

2010/11

No. of Projects

2010/11

R million

2011/12

R million

Non-toll Network

259 7 780 9 911

Toll Network(Excl Finance charges)

148 9 582 6 388

TOTAL VALUE

17 362 16 299

BUDGET BUDGET Total expenditureTotal expenditure

FUNDINGFUNDING Government Grant for the non-toll network

Cannot budget for a deficit

Toll Revenue – to be used only on toll roads Borrowings from capital markets and financial institutions

Other income (minimal) – rental income etc

Alternate Funding Sources finalised/under discussion EIB ECA Foreign investors - roadshows

RatingsRatings

Moody’sGlobal Scale Issuer Ratings:

(Non-guaranteed notes)

Long-Term: A3

Short-Term: P-2

National Scale Issuer Ratings:

(Non-guaranteed notes)

Long-Term: Aa2.za

Short-Term: P-1.za

 

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Gauteng Freeway Improvement Project and Gauteng Freeway Improvement Project and Open Road TollingOpen Road Tolling

GautengGauteng

Most freeways in Gauteng reached their capacity

Peak hours are extending by 10 to 15 minutes each year

Results in congestion and uneconomical use of time with increased vehicle operating costs and carbon emissions

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Economic Impact of Congestion & Insufficient Maintenance

SACCI comments (Jan 2010) : Expressed concern about impact on business due to

congestion and insufficient maintenance Based on conservative assumptions, cost of congestion on

Ben Schoeman amounts to R15m/hour Excludes costs associated with:

Fuel and maintenance Late freight deliveries Lost business opportunities Accident costs

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Economic Impact of Congestion & Insufficient Maintenance

AA conducted tests (August 2007) : 1600cc vehicle travelling between Pretoria and

Johannesburg 122 Minutes additional driving per day (40 additional

hours per month) Engines operating for longer times – 1,5l/hr when idling Additional 705 litres wasted (469 hrs idling) per annum –

Extra R4 935 (R7 per litre) 80 000 people – R395 m per year wasted Excludes working time, frustration, accidents

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Maintenance and Repair Cost Increases due Maintenance and Repair Cost Increases due to Worsening Road Conditionsto Worsening Road Conditions

“The results obtained from the comparison indicate that the maintenance and repair costs of a truck increase as the condition of the road on which the truck is travelling deteriorates. When moving from a good condition road to a bad condition one, increases in vehicle maintenance and repair costs of approximately 121% can potentially be experienced. In addition, the increase in truck repair and maintenance costs due to deteriorating road conditions can potentially lead to an estimated increase of around 10% in the total logistics costs of a company.Other costs that can potentially be attributed to deteriorating road quality are increased vehicle operating costs, increased fuel consumption, increased cargo damages and ultimately increased vehicle design and manufacturing costs.”

*

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Maintenance and Repair Cost Increases due Maintenance and Repair Cost Increases due to Worsening Road Conditionsto Worsening Road Conditions

.

*When comparing the average repair and maintenance costs of vehicles of two companies travelling on specific routes, associated to the condition ... the results potentially indicate that a truck (truck 1) from Company B travelling from Newcastle to Gauteng (300 km) has on average maintenance and repair costs of R627 per trip. A similar truck (truck 2) from the same company travelling on the N3 between Gauteng and Durban for 300 km will have on average maintenance and repair costs of only R270 per trip. If we assume that both trucks make 100 round-trips a year (200 trips in total), the total maintenance and repair costs of truck 1 could potentially amount to R125 400 per year and for truck 2 it would be R54 000. This indicates a potential percentage increase in maintenance and repair costs of 132% per year when comparing a truck travelling on a bad road with one travelling on a good road for company B.

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Background: Economic Background: Economic Impact AnalysisImpact Analysis

SANRAL conducted an economic impact study by the Graduate School of Business of the UCT

Economic impact analysis provided robust indication of project value to economy

Indicators show that project is economically viable and provides very high benefits to the Gauteng Province and South Africa

TABLE 12-1: GFIP: RESULTS OF ANALYSIS OF ECONOMIC BENEFITS AND COSTS

Benefit-Cost Ratio (BCR) 8,4

Economic Internal Rate of Return (RR) 37%

Nett Present Value of Benefits minus Costs (in billions of Rand) R209,8 billion

37

Background: Approval ProcessesBackground: Approval Processes

Approached Minister of Transport 2005 – project proposal

Inter governmental (all spheres) workgroup agreed project principles

DOT, SANRAL and Gauteng Government played leading role in compiling a document: “Gauteng Network Integration Process: Proposal for a Gauteng Freeway Improvement Scheme”

This report was concluded in May 2006. Participants presented the report to political decision

makers for acceptance

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Background: Approval Background: Approval ProcessesProcesses

Several other interactive sessions followed with metropolitan authorities and The Gauteng Province. The project was presented to the Gauteng Province at: The Gauteng Indaba (initiative of then MEC Jacobs) May

2006 Workshop with Gauteng Province in April 2007 Gauteng Legislature: Transport Portfolio Committee in

August 2007

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Background: Approval ProcessesBackground: Approval Processes

Cabinet approval – mid 2007 Intent to toll process – October 2007, indicated a tariff

of 50c/km Advertised in local and national papers Directly informed other authorities Presentations made

Declared as a toll road – March 2008 Procurement of contracts commenced thereafter

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Road Works

Road construction : Civil Works

17 Projects Value: R16.9 billion, including CPA, excl

VAT

41

GFIP – Improvements Made

Widening of the freeways 34 interchanges are significantly upgraded which will

result in less congestion Median lighting has been provided on the route to

allow for a safer journey.

GFIP – Improvements Made GFIP – Improvements Made

Result of Improvements: Less congestion Time savings Greater production Safer journey Reduced carbon emissions Created 20 000 jobs during construction

Toll OperationsToll Operations

Components: Design and Build (project implementation) Operations (toll collection)

ORT roadside, back office, points of presence, systems maintenance and facilities – 8 Years

Transaction clearing house (TCH) – 5 Years Violation processing centre (VPC) – 5 Years

Asset Replacement

44

Toll System Scope of Works – Design & Build:

Installation of roadside and other system hardware (tag readers, electronic vehicle classification, CCTV, servers, work stations, communications, etc);

Development and integration of software; Provision and fitment of equipment and furniture for points of

presence such as permanent kiosks, temporary kiosks, roadside customer service centres, mobile pay stations, etc;

Tag packaging, logistics

45

Toll System

Scope of Works – Operations: ORT Back Office operations - road side transactions validated Customer services at ”Point of Presence”

14 Customer Service Centres 16 Kiosks at Shopping Centres 25 Mobile Service Centres 20 Mobile Pay Stations

46

Toll Toll System System (cont.)(cont.) Call centre Account management Financial transaction settlement E-Tag logistics and testing System/equipment maintenance Facilities maintenance, rentals and rates Violation processing

The toll operations of the project will provide at least 900 permanent quality jobs (Technicians, IT, Points of Presence, Admin, Call Centre, etc)

47

ImportsImports

Specialist equipment Software development Salaries

ZAR 500 million

48

Other Investments ITS and Incident Management:

Network Monitoring Provides information to road users, radio stations Incident management (towing vehicles, medics on bikes, incident

vehicles, etc) Objective to clear road as soon as possible in the event of incident, and

assist road users R50 m per year

Routine road maintenance: Fixing guardrails, potholes, do crack sealing, pick up litter, grass cutting,

lighting maintenance and electricity, etc) R120m per year

49

Other Investments

Periodic Maintenance Comprise periodic maintenance actions such as rehabilitation

and overlays. Scheduled to take place as follow :

Overlays (2020/21 – 2022/23): R2 895 million Rehabilitation (2030/31 –2032/33): R8 683 million

50

FundingFunding GFIP is not funded through the central fiscus Funds are raised on the Capital Markets through

SANRAL’s Domestic Medium Term Note Programme The user-pay principle (tolling) is used to re-pay the

loans, as well as for future operation and maintenance of these roads

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Basis for Determination of Tariffs Basis for Determination of Tariffs

Service and repay loans to fund initial capital cost Interest payments during term of loans Asset preservation Routine road maintenance Operational costs

Considerations– Setting TariffsConsiderations– Setting Tariffs

Affordability – Since 2007, indicated tariff of 50c/km (2007 Rand)

Benefit to user should be greater than overall cost

Project should be financially viable – must be able to repay debt incurred, as well as cover operational maintenance costs

Considerations – Heavy VehiclesConsiderations – Heavy Vehicles

Heavy Vehicles: Have highest impact on road pavement Use of the road – requirement to conduct business,

also high value of time Mostly commercial vehicles – deductions for VAT

and toll as normal business expense

Considerations – DiscountsConsiderations – Discounts

Public concern about affordability for frequent and longer travel distance users – Frequent User Discounts (FUD) to address issue

Project principle – promotion of public transport – Public Transport Discounts to assist

Motorcycles – requests for reduced tariff – toll system designed to classify motorcycles

DiscountsDiscounts E-Toll Tag users:

Class A1, A2, B and C – 25%

Discounted Tariff (per km), VAT Incl. Class A1 – 30c/km Class A2 – 49,5 c/km (42,5 /km, VAT excl) Class B – R1,49 /km (R1,28 /km, VAT excl) Class C – R2,97 /km (R2,55 /km, VAT excl)

Ratio between tariffs for class A2: B: C is: 1: 3: 6

NB: No tag, no discount!

Other Additional DiscountsOther Additional Discounts

Public Transport Operator discounts for qualifying vehicles: 50%

SAPS & SANDF exempt Time of Day Discounts

Time of Day DiscountsTime of Day Discounts

Other Additional Discounts Other Additional Discounts (cont.)(cont.)

Frequent User Discounts only for Class A1 and A2 e-toll tag account users:

Cumulative tolls (after all discounts) for the calendar month prior to current

gantry pass

Discount for each gantry pass in the category*

0 – R100 0% >R100 – R200 2,5% >R200 – R380 7,5% >R380 – R550 15,0% >R550 – R700 25,0% >R700 – R830 37,5% >R830 – R940 45,0%

>R940 50,0%

Payment termsPayment terms

SANRAL is not a financial institution and would therefore not be able to extend credit without being exposed to the National Credit Act, hence no payment terms

7 day grace period from date of transaction

Impact of Toll Tariffs upon Impact of Toll Tariffs upon Financial FeasibilityFinancial Feasibility

VLN Tariff Tag Tariff(-25%)

80c per km 60c per km

66c per km* 49,5c per km*

40c per km 30c per km

To illustrate the impact of different toll tariffs upon financial viability, three sets of light vehicle tariffs were considered:

All discounts remain the same percentages

* Gazetted Tariffs

Monthly TollsMonthly Tolls

51% of all light vehicle users would pay less than R200 toll per month 69% of all light vehicle users would pay less than R400 toll per month 77% of all light vehicle users would pay less than R500 per month. A maximum of 2% of all light vehicle users is expected to pay more than

R1000 per month toll.

*Based on 27 000 interviews

Examples of the Monthly Toll Cost of a Passenger in a Taxi

For 22 return trips, as described, between Golden Highway (south of Jhb) and Centurion via the N1:• R472,18 per month divided amongst 16 passengers• R29,51 per passenger per month• R1,34 per passenger return per day

64

Examples of the Monthly Toll Cost of a Passenger in a Taxi

For 22 return trips, as described, between south of Johannesburg and Centurion via the N1, M1 and N1 again• R228,94 per month divided amongst 16 passengers• R14,31 per passenger per month• 65c per passenger return per day

65

Examples of the Monthly Toll Cost Examples of the Monthly Toll Cost of a Passenger in a Taxi of a Passenger in a Taxi

For 22 return trips, as described, between Golden Highway (south of Jhb) and Jhb CBD via the N1 and M1• R45,71 per month divided amongst 16 passengers• R2,86 per passenger per month• 13c per passenger return per day

66

Economic Study: Inflationary Economic Study: Inflationary EffectEffect Economic study - impact on the cost of consumer

goods determined. Only considered the cost of tolling - ignoring all the

benefits of the freeway upgrades. Conclusions w.r.t. “Cost of Living” increases:

Household incomes less than R24 365 - 0.31% increase. (31c for each R100 spent)

Household incomes between R24 365 and R55 159 - 0.29% increase (29c for each R100 spent).

The scheme will have little impact on the cost of consumer goods and will not be inflationary

67

Traffic Diversion Issue of traffic diversion to supporting road network raised by

local authorities during toll declaration process Extensive traffic modelling conducted to demonstrate impact

during different peak and off peak periods: Additional GFIP capacity attracts traffic to network during peak periods At night and during weekends – slight increase in traffic on alternative

“free” network – however, highway bonus not considered In terms of the overall alternative Provincial and Metropolitan road

network, there should be a reduction of ±10% in travelled distance and in excess of 20% reduction in travel time on a daily basis as a result of the GFIP project.

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How does it work?How does it work? Overhead gantries are fitted with electronic equipment When entering the toll area the electronic equipment will:

– photograph your front and rear number plate;– read the E-tag on your vehicle;– verify that the specific tag is linked to the specific vehicle

[number plate and class] and have an account linked to it;– Generate a transaction; – transactions are rolled up at night;– toll fees are deducted from your e-toll account; – transactions can be viewed on-line the next day

69

SANRAL Principles for ORTSANRAL Principles for ORT

One tag standard One account – may include various vehicles Central clearing

Full interoperability

70

Toll Toll PointPointPositionsPositions(with (with distances)distances)

71

ORT – Central Operations CentreORT – Central Operations Centre

ORT Back OfficeORT Back Office Transaction Clearing House (TCH)Transaction Clearing House (TCH) Violations Processing Centre (VPC)Violations Processing Centre (VPC) New ITS ops centreNew ITS ops centre

Assumptions

12 mins at ave of 80km/h = 16km

Turnaround only possible at next interchange

Satellite Satellite Centre Centre Coverage @ Coverage @ 12 min reach12 min reach

Electronic Toll CollectionTag linked to vehicle and number plateAgreements with rental companiesDay passes will be availableCBRTA to facilitate registration/toll collection at border posts

Automatic Number Plate Recognition – CamerasGrace period of 7 days for payment, thereafter lose discountsViolations

Fines will be stiff Applicable legislation under discussion – AARTO Act, SANRAL Act

etc Will be linked to E-Natis Dedicated enforcement personnel – through RTMC

Gradual country-wide roll-out N4 Platinum Highway e-tags to align first One card, one account country-wide

Account Registration/Obtaining an e-Account Registration/Obtaining an e-Tag Tag

Obtaining an e-tag and registering an e-Toll account will take place as follows; at the e-toll Customer Service website, ww.sanral.co.za; at an e-toll Customer Service kiosk located at a mall; at an e-toll Customer Services centre situated along the

freeway network; contacting the e-toll Call Centre; or buying an e-tag at conveniently located retail outlets – set

up account through website or contacting the Call Centre

Interoperable with all other toll plazas in RSA

Account Registration Account Registration

Locations of the registration points will be available on www.sanral.co.za once registration commences.

The full amount of the purchase price of an e-tag is credited to the road user’s e-toll account upon registration - means the e-tag is effectively free to road users.

Same account and e-tag can be used at any other plaza where e-toll is/will become available

Account Payment/Top-UpAccount Payment/Top-Up

Road users will have the option to link their e-toll account directly to their credit card

If user elects to have a pre-paid account: Electronic fee transfer (EFT), Debit orders, At selected retailers (similar to the purchase of air-time). At dedicated e-toll customer service centres/kiosks.

Monthly Tolls – Toll CalculatorMonthly Tolls – Toll Calculator

Toll calculator available to determine estimated monthly toll costs

Calculator can be accessed on www.sanral.co.za/tollcalc

78

Monthly Tolls – Toll CalculatorMonthly Tolls – Toll Calculator Input:

Entry/exit points Number of journeys Time of day when journeys are undertaken Vehicle class

Output: Distance travelled Estimated toll cost before discounts Estimated toll costs after discounts

79

Non Payment of Toll TariffNon Payment of Toll Tariff The non-payment of Toll Tariff will result in :

levying of administrative fees, levying of fines and/or prosecution in terms of applicable legislation.

Frequent User Discount, e-Toll Tag Discounts and Public Transport Discounts will not be applicable in the case of the non-payment of Toll Tariffs within the prescribed time period

80

Non Payment of Toll Tariff Non Payment of Toll Tariff (cont.)(cont.)

Non-payers – 7 day grace period Be invoiced for outstanding toll, if no registration

takes place within grace period Debt collection processes will be implemented On road enforcement unit: physical enforcement of

amongst others, law enforcement functions and the collection of outstanding tolls

81

GFIP: STATUS

Roadworks near completionBitumen shortage: surfacing slower than planned

ETC Infrastructure will be ready in time

Tariffs announced in early February 2011

Public/political outcry against tariffsMinisterial Steering Committee and Work Groups reviewing tariffsMinister’s statement assures investorsPublic participation with stakeholder groups currentFinal report expected soonTolling expected to start in Q3 2011

CONCLUSIONCONCLUSION

Investing in roads For sustainable economic growth Leverage procurement to transform industry Make communities economically independent Create public value Core components of South Africa’s growth strategy

Knowledge based organisation Right professional skills Support tertiary educational institutions

Effective delivery of road infrastructure for public transport and movement of freight

SANRAL: Touching Peoples LivesSANRAL: Touching Peoples Lives

“Where a road passes, development follows

right on its heels”

THANK YOU!THANK YOU!

Fraud Hotline: 0800 204 558Website: www.nra.co.za